Arab Republic of Egypt: 2017 Article IV Consultation, Second Review Under the Extended Arrangement Under the Extended Fund Facility, and Request for Modification of Performance Criteria-Press Release; Staff Report; and Statement by the Executive Director for the Arab Republic of Egypt
IMF Staff Country Reports, January 22, 2018
Source details
- Canonical URL
- Arab Republic of Egypt: 2017 Article IV Consultation, Second Review Under the Extended Arrangement Under the Extended Fund Facility, and Request for Modification of Performance Criteria-Press Release; Staff Report; and Statement by the Executive Director for the Arab Republic of Egypt
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Bibliographic details
- Published: January 22, 2018
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484338117.002
Overview and key findings
- The 2017 Article IV Consultation highlights that Egypt’s reform program, supported by the Extended Fund Facility arrangement, has played a critical role in stabilizing the economy.
- By the end of 2015/16, a long-standing and ultimately unsustainable policy mix had resulted in:
- low growth and investment,
- elevated general government debt,
- an overvalued exchange rate,
- a widening current account deficit,
- declining gross international reserves, and
- severe shortages of foreign exchange.
- Egypt’s economic outlook is favorable, provided prudent macroeconomic policies are maintained and the scope of growth-enhancing reforms is broadened.
Macroeconomic outlook and risks
- Favorable outlook conditional on:
- maintaining prudent macroeconomic policies, and
- broadening the scope of growth-enhancing reforms.
- Medium-term objective:
- sustain economic reform momentum to raise potential output and promote inclusive growth to create jobs for Egypt’s young and growing population.
Policy priorities and recommendations
- To sustain reform momentum, policy priorities in the medium term should aim to:
- raise potential output, and
- promote inclusive growth to create jobs for Egypt’s young and growing population.
Subject coverage and keywords
- Subject: Banking; Budget planning and preparation; Energy subsidies; Expenditure; Inflation; Prices; Public debt; Public financial management (PFM); Revenue administration
- Keywords: authority; Budget planning and preparation; center; CR; economy; Egyptian pound; Energy subsidies; financial asset; Global; government procurement; Inflation; inflation expectation; ISCR; liberalized exchange rate regime; policy; state guarantee
Content in this bundle
- Country Report